FAQ

Chapter 7, often called “liquidation bankruptcy,” wipes out most unsecured debts like credit cards and medical bills in just a few months. Chapter 13, or a “reorganization bankruptcy,” allows you to create a 3–5 year repayment plan to catch up on certain debts while keeping your property. The best option depends on your income, debts, and financial goals.

Eligibility is determined through a “means test” that compares your income to Montana’s median income for your household size. If your income is below the median—or if your expenses leave little disposable income—you should qualify. Our attorneys can review your situation and help you understand your options.

Yes, in many cases you can keep your home and vehicle by using Montana’s bankruptcy exemptions. Chapter 13 is especially helpful if you are behind on payments and want to catch up. Our attorneys will explain exactly what property is protected and how exemptions apply to your case.

A Chapter 7 case typically takes about 3–4 months from filing to discharge. Chapter 13 cases last 3–5 years, since they involve a repayment plan. The length of time depends on the type of bankruptcy and your specific circumstances.

Most unsecured debts can be discharged, including credit card balances, personal loans, payday loans, and medical bills. Certain judgments and utility bills may also be eliminated. Discharge gives you the chance to start over without the burden of overwhelming debt.

Some debts cannot be discharged, including most student loans, recent tax debts, child support, alimony, and criminal fines. However, bankruptcy can help make these obligations more manageable, particularly through Chapter 13. Our attorneys will review your debts and explain what relief is available.

Yes. Once you file, the automatic stay immediately stops creditors from calling, suing, garnishing wages, or repossessing property. This protection begins immediately and stays in effect throughout your case.

Bankruptcy will appear on your credit report for up to 10 years, but many people start rebuilding credit within days of filing. By making on-time payments, reducing debt, and using secured credit products, clients often see their credit score improve much faster than they expected. Bankruptcy is the first step toward financial stability.

Montana law allows you to protect almost all of your property when you file bankruptcy. Exemptions cover home equity, motor vehicles, personal property, tools of trade, retirement accounts, and more! Our attorneys help make sure you get the maximum protection available.

In most cases, no. Montana’s generous homestead exemption allows you to protect significant equity in your home. Many clients are able to keep all of their property while discharging unsecured debts.

Yes, you can still file bankruptcy, but which exemptions you can use depends on your residency. If you have not lived in Montana for at least two years, you may have to use your previous state’s laws. This is something we carefully review before filing your case.

While it’s possible to file without an attorney, bankruptcy law is complex and mistakes can cost you property, money, or even your entire case. An experienced Montana bankruptcy attorney ensures your rights are protected, your exemptions are maximized, and your case is handled correctly from start to finish.